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JEDDAH: Saudi Arabia’s Tabuk region offers over 120 investment opportunities across sectors, from large projects to small businesses, leveraging its young workforce and strong consumer demand, a top official said.

The region’s mayor, Hussam bin Muwafaq Al-Youssef, and local business leaders discussed important initiatives and investment opportunities in the municipal sector. The meeting, part of the “Chamber’s Diwaniya” events during Ramadan, aimed to strengthen communication, encourage dialogue, and exchange ideas.

The gathering was also attended by Imad Al-Fakhri, chairman of the Tabuk Chamber of Commerce, and members of the organization’s board of directors, according to the Saudi Press Agency.

The northwestern region is undergoing a major transformation, hosting some of the Kingdom’s most innovative projects and significant investments. It aims to become a leading tourism destination along the Red Sea.

A key driver of this change is NEOM, a futuristic urban development that merges natural wonders with cutting-edge technologies. As Saudi Arabia’s largest giga-project and a central element of Vision 2030, NEOM, along with AMAALA and the Red Sea projects, are set to fuel growth and attract substantial investment across various sectors.

During the gathering titled “Tabuk ... Your Investment Destination,” Al-Yousef discussed key regional developmental and economic projects and shed light on his mayoralty’s plans to improve quality of life and attract investments.

The mayor highlighted some of the region’s competitive advantages, such as manufacturing, agriculture, mining, energy, and tourism, which have contributed to boosting Tabuk’s investment appeal.

He discussed the area’s significant potential, particularly in the tourism sector and said the municipality is working to create an investment-friendly environment by offering a variety of flexible processes and support to investors and entrepreneurs.

Al-Youssef said Tabuk boasts valuable assets, specifically its young talent, population structure, and purchasing power, placing the region third in the Kingdom for per capita consumption.

He added the municipality has over 120 available investment prospects across different sectors, including large, medium, and small-scale projects.

He encouraged business leaders to seize the opportunities and invest in the growing sectors, particularly with the government’s ongoing support for the private sector.

Al-Fakhri praised the municipality’s efforts in creating a competitive business environment and supporting investors and commended the collaboration between the public and private sectors in driving development, attracting investments, and overcoming challenges to benefit the region and its residents.

Al-Yousef listened to attendees’ feedback on the challenges investors face in the municipal sector and received suggestions for improving the investment environment and municipal services.

RIYADH: Saudi Arabia’s gross fixed capital formation rose to SR1.18 trillion ($313.68 billion) in 2024, marking a 5.3 percent annual increase, recent data showed. 

A report from the Ministry of Investment attributed this growth to rising non-government sector investments, which expanded by 7.6 percent during the year. 

The Kingdom’s GFCF has outperformed expectations, with cumulative investments from 2021 to 2024 reaching SR4.11 trillion — 28 percent above the initial target of SR3.22 trillion for the period. 

By 2030, the National Investment Strategy, a key driver of Vision 2030, aims to push total annual GFCF to SR2 trillion, contributing 30 percent to gross domestic product. The plan also targets SR1.7 trillion in domestic investments within GFCF, reinforcing Saudi Arabia’s commitment to private sector expansion and sustainable economic growth.   

GFCF, which measures the net increase in physical assets within an economy, is a crucial component of GDP as it reflects capital accumulation supporting future production capabilities and economic growth. 

In 2024, the private sector accounted for 88 percent of total GFCF, reaching SR1.03 trillion. Meanwhile, the government sector, which made up 12 percent, saw an 8.3 percent decline to SR144.3 billion, signaling a strategic shift toward private sector-led growth. 

Foreign direct investment has also exceeded projections, with total inflows from 2021 to the third quarter of 2024 reaching SR391 billion, including SR104 billion from the Aramco deal, according to the ministry. This surpasses the SR295 billion target for the period by 33 percent, reflecting strong investor confidence and Saudi Arabia’s success in attracting capital under Vision 2030. 

The Kingdom has implemented a range of pro-business reforms, including regulatory streamlining, tax incentives, and the Regional Headquarters Program to attract multinational corporations. Giga-projects like NEOM, the Red Sea, and Qiddiya, along with public-private partnerships and sovereign investment initiatives, are also drawing investor interest across sectors.  

In a recent milestone, the Kingdom approved the organization of the Saudi Investment Promotion Authority to enhance its investment ecosystem and attract global capital. Endorsed during a Cabinet meeting chaired by Crown Prince Mohammed bin Salman earlier in March, the authority will promote investment opportunities domestically and internationally while working closely with key stakeholders.   

Investment Minister Khalid Al-Falih noted that the initiative strengthens Saudi Arabia’s position as a premier investment hub, leveraging its strategic location, investor-friendly policies, and world-class infrastructure.